Credo Brands Marketing Ltd, the parent company of the denim brand Mufti, on Monday announced that it has garnered INR 165 crore from anchor investors ahead of its upcoming initial public offering.
The company allocated 58.9 lakh equity shares to 11 funds at INR 280 each, matching the upper limit of the price band, as indicated in a circular posted on BSE’s website.
Nippon Mutual Fund, HSBC Mutual Fund, JM Mutual Fund, Aditya Birla Sunlife Insurance, Kotak Mahindra Life Insurance Company, Bajaj Allianz Life Insurance Company, Integrated Core Strategies (Asia), Morgan Stanley Asia, SBI General Insurance Company, and Reliance General Insurance Company are among the participants in the anchor book.
Credo Brands’ inaugural public offering consists solely of an Offer for Sale (OFS) of up to 1.96 crore shares by the company’s promoters and other current shareholders.
The offering, priced in the range of INR 266-280, is set to be open for subscription from December 19 to 21.
At the lower and upper boundaries of the price range, the IPO is anticipated to raise INR 522 crore and INR 550 crore, respectively.
Fifty percent of the total issue size is allocated for qualified institutional buyers, 35 percent for retail investors, and the remaining 15 percent for non-institutional buyers.
Investors have the option to bid for a minimum of 53 equity shares and in increments of 53 equity shares thereafter.
Credo Brands Marketing holds a prominent position among domestically originated brands in the mid-premium and premium casual men’s wear market within the country.
As of September 2023, Credo Brands Marketing has established its presence throughout India with a network of 1,807 touchpoints, comprising 404 exclusive brand outlets (EBOs), 71 large format stores, and 1,332 multi-brand outlets (MBOs).
Credo Bands experienced a 46 percent growth in revenue from operations, reaching INR 498.18 crore in fiscal year 2023, compared to INR 341.17 crore in the previous fiscal. Additionally, the profit after tax witnessed a remarkable surge of 117 percent, amounting to INR 77.51 crore in fiscal year 2023, up from INR 35.74 crore in the preceding financial year.
DAM Capital Advisors, ICICI Securities, and Keynote Financial Services serve as the book-running lead managers for the offering.
The company intends to list its equity shares on both BSE and NSE.